State Licensing

Through its proactive state government affairs initiative, NAPEO creates and cultivates a legislative and regulatory framework in all 50 states that establishes legal and operational certainty that positions the PEO industry for continued growth. Additionally, NAPEO promotes laws and regulations that provide assurance to PEO clients and worksite employees, as well as insurers, taxing authorities, regulators, and the general public that PEOs are complying with important financial and operational requirements. Currently, more than 30 states require licensing or registration for PEOs.

NAPEO members: please visit our State Regulatory Database for additional details on these state licensing and other regulatory provisions.

NAPEO developed a PEO Model Act that has served as the foundation for many of the licensing and registration regulations currently in place. NAPEO supports the proactive use of this model bill for several fundamental reasons:

It provides statutory certainty and a firm foundation of law for the PEO industry.

From small start-ups to large PEOs, it creates a level, competitive playing field and diminishes the ability of industry participants lacking the financial or operational wherewithal to distort the market or harm legitimate PEOs.

It resolves the most common legal issues that can arise in a PEO context.

It promotes a common set of terms and provisions to make operations from state to state as seamless as possible.

For more information about NAPEO's government affairs initiative, please visit the portion of our Web site entitled What We Advocate, located within the Government Affairs area.